Investors have filed lawsuit against U.S. Fund Manager LJM Partners, after the fund LJM Preservation and Growth Fund (LJMIX), suffered massive losses of almost 80%. The investors have filed a class action against the fund for failing to disclose that LJMIX was not focused on capital preservation and had left investors exposed to an unacceptably high risk of catastrophic losses.

” Fund Faces Class Action After 80% Losses on S&P Index “

The case is filed by Scott+Scott, Attorneys at Law, a national securities and consumer rights litigation firm, in the U.S. District Court for the Northern District of Illinois . LJMIX is a mutual fund that purports to invest primarily in purchased and sold call and put options on Standard & Poor’s 500 Futures Index (“S&P”). While S&P index fell 4.6% on 5th February 2018, the fund fell from $9.82 (2nd February 2018) to $1.94 (7th February 2018), approximately 80% losses.

According to Reuters in 2017, the LJM fund raised almost $393 million. In a filing with the U.S. Securities and Exchange Commission on 7th February 2018, the LJM Preservation and Growth Fund is closed to new subscription except for dividend reinvestment.

LJM Partners was founded in 1998 was is registered as a Commodity Trading Advisor and Commodity Pool Operator. The firm manages liquid alternative investment strategies with low correlation to other asset classes, and a highly focused approach to volatility management. The fund is managed by LJM Partners founder, Anthony Caine and Anish Parvataneni, former trader at Citadel. In 2018, LJM Partners has $547 million AUM, of which $82 million are proprietary money co-invested.

Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.